Federal minister to meet with Nhulunbuy residents

The Federal Resources Minister Ian Macfarlane and Chief Minister Adam Giles are expected in Nhulunbuy today to meet with business representatives and speak to locals about the future of the Gove alumina refinery.

Rio Tinto, has sent a notice to employees telling them a full curtailment of refinery production is one of five options the company is considering following a reduction of the Northern Territory Government's offer of cheaper gas.

Former CLP Chief Minister Terry Mills offered Rio Tinto a guarantee of 300 petajoules of gas, but that figure has since been decreased to 175 petajoules since Adam Giles became Chief Minister.

Residents have been left in limbo, uncertain about whether the refinery will stay open for almost a year.

The Federal Government is considering whether to underwrite a loan to build a pipeline to bring cheaper gas to power the refinery, under a proposal to make it more financially viable.

David Suter from the East Arnhem Chamber of Commerce said locals just want certainty about the refinery's future.

"It's just an ongoing concern for everybody at the moment as to what the mining company's decision is going to be so, basically a lot of people are saying 'bring it on, make a decision' so that we can get on with our lives."

The Labor Member for Nhulunbuy, Lynne Walker, said locals want to know what the Federal government can offer to make the future of the refinery more secure.

"The last time that Ian Macfarlane came into Nhulunbuy it was an incredibly hostile meeting," Ms Walker said.

"I think people want to hear honestly and truthfully what the plans are and ... why it is they reneged on the deal, and what it is that's new."

"Locals will be wanting to hear from Ian Macfarlane and Adam Giles.

"They don't want to be loaded up with spin from the government, they don't want to hear finger pointing exercises and blame laying exercises."

Mr Macfarlane said it is reasonable of the Federal Government to expect Rio Tinto to keep the refinery open for 20 years, in exchange for the Commonwealth underwriting a multi-million dollar gas pipeline to Gove.

"In terms of giving the community the confidence it needs I think that's the very least we can ask, there's no point in us having this conversation again in five years time and again five years after that," Mr Macfarlane said.